The lure for the Indian commercial vehicle market seems to be growing by the day. Days after Volvo made a full-fledged into the segment by announcing roadmap for a joint venture with domestic player Eicher, Daimler - the world’s biggest CV maker - on Friday announced a JV with the Hero group of the Munjals for light, medium and heavy-duty vehicles.
The companies signed a shareholder agreement and said they would submit an application with the Foreign Investment Promotion Board with details for the venture.
The JV with Hero group, that has a successful two-wheeler partnership with Honda, would not only cater to the domestic market but would also target exports. "The vehicles produced will be variants of Daimler Trucks current product portfolio tailored to the Indian market," they said.
The companies, however, refused to disclose details regarding the planned investments, equity holdings and where they proposed to set up the new factory.
Daimler already has an independent CV operation in India and said local manufacturing operations for special applications of Mercedes-Benz trucks and bus bodies would continue for the time being. "Daimler Buses recently announced its plans to enter a co-operation with the Indian Company Sutlej Motors and will begin producing bus bodies for Mercedes-Benz luxury coaches in Pune in the first quarter of 2008," it said.
"The partnership with the Daimler Trucks marks our foray into the four-wheeler space. This initiative is in pursuance of the Hero Group’s long-term vision and strategy to have a diversified portfolio of high-growth businesses by building on its core competencies and expertise," said Sunil Kant Munjal, chairman of Hero Corporate Service.
"In Hero, we have found an excellent, experienced partner with a long tradition of manufacturing, know-how of the local industry and a proven track record of managing long term relationships with partners," said Andreas Renschler, head of Daimler Trucks.
Early this week, Volvo bought into Eicher and said it would invest $350 million in a new unlisted subsidiary the two firms would form. Also, Nissan and Ashok Leyland announced plans for a JV for light commercial vehicles.
The companies signed a shareholder agreement and said they would submit an application with the Foreign Investment Promotion Board with details for the venture.
The JV with Hero group, that has a successful two-wheeler partnership with Honda, would not only cater to the domestic market but would also target exports. "The vehicles produced will be variants of Daimler Trucks current product portfolio tailored to the Indian market," they said.
The companies, however, refused to disclose details regarding the planned investments, equity holdings and where they proposed to set up the new factory.
Daimler already has an independent CV operation in India and said local manufacturing operations for special applications of Mercedes-Benz trucks and bus bodies would continue for the time being. "Daimler Buses recently announced its plans to enter a co-operation with the Indian Company Sutlej Motors and will begin producing bus bodies for Mercedes-Benz luxury coaches in Pune in the first quarter of 2008," it said.
"The partnership with the Daimler Trucks marks our foray into the four-wheeler space. This initiative is in pursuance of the Hero Group’s long-term vision and strategy to have a diversified portfolio of high-growth businesses by building on its core competencies and expertise," said Sunil Kant Munjal, chairman of Hero Corporate Service.
"In Hero, we have found an excellent, experienced partner with a long tradition of manufacturing, know-how of the local industry and a proven track record of managing long term relationships with partners," said Andreas Renschler, head of Daimler Trucks.
Early this week, Volvo bought into Eicher and said it would invest $350 million in a new unlisted subsidiary the two firms would form. Also, Nissan and Ashok Leyland announced plans for a JV for light commercial vehicles.